Exactly this. I very much doubt this is anything but the realpolik that is always going on that is a large part of keeping the country secure and the taps flowing.

Heat pumps still need to get much cheaper to be viable for most people.

1. Complete putting Thames Water into administration
2. Place Thames Water under government control, set public benefit goals
3. Wait for improvements in the data
4. Pass law that any water company failing to exceed Thames Water performance will be merged with it
5. Wait for the firms to strangle themselves with the rope you gave them

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The way it looks to me right now - pressure mounts on practically every side, Labour popularity rises toward the election (its been said front loading unpopular stuff is deliberate), Tories start trying to distance themselves from Reform (to avoid becoming known America apologists for a start), relationship repair becomes a keystone of the 2029 - 2034 session.